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Retailers are still figuring out how to tie AI goals to executive compensation

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Retailers are still figuring out how to tie AI goals to executive compensation

One prominent retailer recently made a change to executive payouts, highlighting how much the industry’s priorities have shifted in recent years. 

Earlier this month, Reuters published a story about how Ralph Lauren added “AI metrics” as one of the factors that could now be used to adjust annual incentive payouts for executives, alongside more traditional business metrics. Reuters found the change in a 131-page SEC disclosure. A Ralph Lauren spokesperson told Reuters that the change reinforced to executives “opportunities for leveraging AI to enhance our work.” 

Ralph Lauren appears to be ahead of the curve in tying AI usage to executive incentive plans. As Reuters reported, “about 12% of companies in the S&P 500 index disclosed AI-related goals in their executive incentive plans this year, up from 5% of companies in 2024.” But many of the companies that have done so are tech companies like Salesforce or IBM. 

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